Cost Estimating for IT Projects

Course overview

This 3-day, in-depth course, focuses on approaches to estimating costs and schedules for information systems and technology projects. Understand the various project areas that must be estimated, and the tools and methodologies best suited for the estimates you will prepare. Recognize the importance of effective estimating throughout the project management life cycle.

Prerequisites

• A comprehensive introductory project management course such as Project Management Fundamentals (HC577S) plus other core project management courses

Audience

Course objectives

Learn how to:

• Estimate information systems and technology projects
• Discuss methodologies and how they are affected by different estimating techniques
• Size project deliverables
• Identify associated project costs to build a comprehensive project estimate
• Identify risks and their impact on project costs
• Estimate the development schedule, staffing, and effort
• Select the estimating techniques that are best suited for your projects
• Determine how different factors affect estimate accuracy
• Update estimates throughout a project’s duration
• Estimate defect potentials, maintenance, and deployment

Next steps

• Managing Project Quality (HE546S) or other advanced Project Management topics leading to recognition of your knowledge and skill by passing the Project Management Professional (PMP) certification appropriate to your country or region

Benefits to you

• Define cost estimating, cost estimating terms, and cost estimating concepts
• Explain the challenges associated with IT project estimating
• Use a variety of estimating methodologies
• Use the WBS in estimating the work
• Explain the purpose of estimating size
• Explain lines of code and function point effort estimation models
• Identify the key characteristics of the COCOMO Model
• Identify various factors that influence estimates, such as productivity, staffing, quality, and risks
• Prepare a cost estimate for your project
• Identify the keys to estimating success

Course outline

Cost Estimating Overview

• Define cost estimating terms and key concepts
• Explain the iterative nature of cost estimating
• Associate the estimating process with different product life cycles

Getting Started

• Explain the prerequisites to the estimating process
• Create a deliverables-based work breakdown structure (WBS)
• Use a resource breakdown structure (RBS)

Estimating Techniques

• Describe key techniques for developing cost estimates
• Explain the major pros and cons of the various estimating techniques
• Create cost estimates using different estimating techniques

Estimating Software Development Efforts

• Prepare a cost estimate using Function Point Analysis (FPA)
• Prepare a cost estimate using the Constructive Cost Model (COCOMO)

Finalizing the Estimate

• Apply a ten-step cost estimating process
• Document the estimate to ensure accuracy, clarity of assumptions, and confidence
• Incorporate five tips that can improve estimating